KUALA LUMPUR, Sept 8, 2025 — The Galen Centre for Health and Social Policy has proposed that the Malaysian government rationalize sugar subsidies and redirect the resulting funds to enhance on-call allowances for Ministry of Health personnel.
In a recent statement, Galen Centre CEO Azrul Khalib argued that every ringgit saved from sugar subsidy cuts could be channelled into supporting frontline healthcare workers, thereby strengthening public health delivery and boosting retention of medical staff. He described the move as offering a “win-win” outcome—both financially efficient and beneficial to the healthcare ecosystem.
Malaysia has long maintained extensive subsidies on sugar, but critics argue these schemes are inefficient, poorly targeted, and prone to abuse. Subsidized sugar is sometimes over-ordered and diverted outside intended uses, contributing to smuggling and shortages. Proponents of reform have also warned of the health consequences of excessive sugar consumption, which is linked to rising rates of obesity and diabetes nationwide.
Echoing past reform efforts, supporters note that redirecting subsidy savings toward healthcare can both address fiscal pressures and improve social outcomes. Such a mechanism aligns with global practices where resources from inefficient subsidies are repurposed for more impactful health or welfare interventions World BankIISD.
